Is Primo Chemicals overvalued or undervalued?

As of 22 September 2025, the valuation grade for Primo Chemicals has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 33.36, an EV to EBITDA of 10.74, and a PEG ratio of 0.21, which suggests strong growth potential relative to its price.
When compared to peers, Primo Chemicals stands out favorably against Solar Industries, which has a PE ratio of 103.79, and Gujarat Fluorochemicals with a PE of 68.7, both categorized as very expensive. This peer comparison reinforces the notion that Primo Chemicals is undervalued in its sector. Additionally, while the company's recent stock performance has lagged behind the Sensex, particularly with a year-to-date return of -29.96% compared to the Sensex's 5.15%, its long-term performance over five years shows a remarkable gain of 161.83%, further supporting its attractive valuation.